Economy and Population

Thoughts on a Free Market Economy…

“Economy and Population”

By Phyllis Hunsinger

December 1, 2018

            Currently the wave of illegal immigrants is in the news.  To storm the borders of a country, ignoring the laws of legal immigration, amounts to an invasion by foreigners; however, some argue the increased population will enhance the economy.  Is this true?

            As Mark Lautman, in his book, “When the Boomers Bail,” said “Economic development is about growing your economy faster than your population, or E>P, when E = Economy and P = Population.” 

           The rationale behind his equation is that if the economy grows faster than the population, there will be more revenue to provide services such as transportation, hospitals, libraries, and municipal and county services. If the economy grows slower than the population for any length of time, the result will be less money for basic services. The result of having to serve more people with less revenue, according to Lautman, means “you go out of business.”

           Any local economy consists of an economic base, where products and services produced within the community are exported to bring in new money to the community; a service sector, where products and services are sold primarily within the community; and, the net worth of residents and businesses. To be a thriving community, all three of the above components must be growing greater than the population.

          To show the importance of having the economy grow faster than the population, Mr. Lautman referenced data on the case of unbalanced immigration.  The five poorest communities in the U.S. are on the U.S.-Mexico border.  Except for San Diego, border towns are poor and have been losing ground against the rest of the nation because their economic base is primarily the warehousing industry serving the value-added manufacturing industries across the border in Mexico.  These communities are being inundated with new, poor, uneducated residents every year.

          Typically a citizen in the U.S. understands economics only as it affects them personally; however, our household incomes and discretionary money is inextricably linked to the relationship between the local economic base and the population.  With a massive illegal immigration invasion into the U.S. will come many poor, uneducated people unable to contribute to the economic base, therefore, the economy will grow at a slower rate than the population.  When this happens, the standard of living will diminish for all.


, Phyllis Hunsinger © 2013 All Rights Reserved

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